PM Shehbaz vows sustainable power sector reforms post Rs. 7.5/unit tariff cut

ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif on Wednesday emphasised that following the recent reduction of approximately Rs. 7.5 per unit in electricity tariffs, the government was now focused on ensuring long-term affordability and reliability in power generation.

The meeting was attended by Federal Minister for Power Sardar Awais Leghari, Minister for Economic Affairs Ahad Khan Cheema, Minister for Information Attaullah Tarar, Minister for Petroleum Ali Pervaiz Malik, and senior officials from relevant departments.

A Prime Minister’s Office news release said the prime minister chaired a high-level meeting to review the Integrated Generation Capacity Expansion Plan (IGCEP) 2024–2034, reaffirming the government’s commitment to reducing electricity prices and implementing sustainable reforms in the energy sector.

“After providing relief to the people with a significant tariff reduction, we are now implementing an effective strategy for sustainable energy sector reforms,” said Prime Minister Shehbaz Sharif.

The PM directed for the timely completion of strategic projects like the Diamer Bhasha Dam, stressing the need for a robust system to harness the country’s water and power resources.

“Any delay in energy projects is unacceptable,” he said, adding, “We are moving towards establishing a free electricity market in the country very soon, which will promote competition and lead to further reduction in power tariffs.”

The Prime Minister was briefed that the IGCEP had been thoroughly re-evaluated on his instructions, revealing room for improvement. The revised plan, prepared through dedicated efforts by the Ministry of Energy, aligns better with ground realities and future demands.

The key highlights of the briefing included that competitive bidding will now be used for upcoming power generation projects over the next ten years, and expensive power projects amounting to 7,967 MW are being removed from the plan.

The revised project timelines and the exclusion of costly ventures will result in estimated savings of $17 billion (Rs. 4,743 billion), indigenous resources and alternative energy sources like solar, nuclear, and hydropower will be prioritized over imported fuels, leading to significant foreign exchange savings and gradual phasing out of capacity payments to power producers is also part of the reforms.

Prime Minister Shehbaz praised Power Minister Sardar Awais Leghari and his team for their efforts, calling the Rs. 4,743 billion savings a “historic success” for Pakistan.